The Enforcement Directorate (ED) is reportedly investigating Dentsu Communications India in connection with an alleged money-laundering case involving Rs 137 crore. The case also involves Suumaya Industries and several stockbrokers accused of manipulating share prices through circular transactions.
Reportedly, raids were conducted by the ED at 19 locations in Mumbai, Delhi, and Gurugram. These raids uncovered Indian and foreign currency, gold bars worth Rs 3.4 crore, and documents related to property deals and digital devices. The investigation is examining the role of these entities in artificially inflating turnover and valuations.
Details of the case
The case centers on Suumaya Industries, which is alleged to have used circular trading to increase its turnover to Rs 5,000 crore. An FIR filed by the Worli police accuses Suumaya Industries, Dentsu Communications India, and their promoters of participating in these activities. The ED’s findings suggest that the scheme involved creating fake invoices and transport receipts to substantiate transactions.
The investigation has also raised questions about a Haryana government contract under the ‘Need to Feed’ programme during the Covid-19 pandemic. Suumaya Industries claimed to have supplied agro-products under this programme, but the ED has found no evidence to support these claims.
Dentsu India’s response
Dentsu India has issued a statement clarifying its position. According to the company, fraudulent activities were identified in 2021 within its InDeed business unit. The company stated that these activities were carried out by third parties and former employees, and criminal complaints were filed against them at the time.
Dentsu India also reported that it had proactively informed the authorities three years ago and has been cooperating with the investigation since then. The company emphasised that the recent ED visit to its Mumbai office did not result in the seizure of any properties.
Leadership update
Amid these developments, Dentsu India has announced the appointment of Abhirup Datta as CEO of its digital arm, Sokrati. The company has stated that it is continuing its operations and cooperating fully with authorities.
As per several media reports, ED is currently analysing the collected evidence and investigating the transactions to determine the extent of any wrongdoing.